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Hey guys my name is James and in this quick video im going to show you how to post closing entries in two different ways a long way and a short way a lot of you have been asking for this one so thanks for all your requests and an extraspecial thanks to my channel members your contributions helped memake this so without further ado lets begin this is the accounting cycle it shows us how financial accounting works in eight steps closing entries are tucked away at the very end of the cycle in step 8 we post them at the end of each accounting period after were done creating financial statements but what are they exactly? closing entries arejournal entries that reset temporary accounts to zero they transfer their balances into retained earnings which is a permanent account held in a balance sheet remember a journal entry is a record of a financial transaction and retained earnings are a businesses profits held for future use but what are temporary and permanent accounts? let
